German based luxury fashion house Hugo Boss AG (ETR: BOSS) is optimistic that sales in mainland China will boom despite increasing calls from the west urging western multinationals to boycott China following forced labor accusations in Xinjiang.
In the first quarter ending March 31, Hugo Boss recorded double sales in mainland China. The company’s chief executive Yves Mueller, told journalists that the company is optimistic this trend will be replicated in the current quarter.
Mueller said, in the first quarter the company posted a 29% increase in adjusted sales compared to the first quarter of 2019 when the pandemic had not yet hit China.
Hugo Boss has been under fire following its stand and sentiments about buying cotton and goods from the Xinjiang region. In March, three Chinese celebrities announced they would be boycotting the brand due to its stand on the matter.
Fellow industry peer and also German based, sportswear company Puma SE (ETR: PUM) is expecting sales in mainland China to plunge in the second quarter.